During 2019,Storey Company Acquired a New Computer with a Cash

question 170

Essay

During 2019,Storey Company acquired a new computer with a cash price of $12,800 by exchanging an old one on which Storey received a $1,500 trade-in.The old computer had cost $9,000 and its accumulated depreciation to the date of exchange was $5,500.This transaction has commercial substance.Prepare the journal entry to record the exchange.

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Definitions:

Price of Labor

The wage rate paid to employees, essentially the cost of labor to employers.

AVC Curve

A graph that shows the average variable costs of production at different levels of output.

Variable Resource

An input or factor of production whose quantity can be changed easily by a firm as its output level changes.

Total Variable Costs

The costs that vary directly with the level of production or output.